A prominent housing economist had declared the U.S. housing market is “stuck and we are not convinced it will become unstuck” until at least 2026 or even later.
In an interview with CNN, Michael Gapen, head of U.S. economics at Bank of America (NYSE:BAC), insisted home prices will remain elevated and could even rise higher while a shortage of inventory will remain. Gapen added that even if the Federal Reserve gets around to cutting interest rates, mortgage rates will not decrease substantially.
“This will take many years to work itself out – there isn’t a magic fix,” said Gapen. “The message for first-time homebuyers is one of patience and frustration.”
Gapen stated the current market environment is also being shaped by an economic anomaly.
“It’s been a weird combination,” he continued. “Mortgage rates rose substantially but so did home prices. That typically doesn’t happen.”
Gapen also noted the situation is being exacerbated by a higher-than-normal number of homeowners who are reluctant to sell their properties.
“Why would I sell unless I have to?” said Gapen. “Prices have gone up and the mortgage rate is a lot higher. So, I’m content to stay where I am.”
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LOL, BOA is a radical progressive corporation that is part of the Party that created this mess. BOA is as evil as it gets. Welcome to what Orwell warned us would happen.
Why can’t you simply state your opinion instead of slandering someone else’s opinion?
Agreed 100%
I meant agreed 100% with We The People – certainly NOT with Horace.
I don’t believe it’s one person can sell the problem and it’s not gonna take a short time to fix it either. I believe it’s a
Vicious cycle were increasing wages, increasing real estate increase in property taxes.
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The three major things driving up new home costs are increasing labor costs, increasing materials cost and increasing government permit fees.,
So, if you don’t like the higher prices you must be against giving construction workers a living wage. You must be for clear cutting forests and increased mining to lower the cost of lumber and other materials. You must not want cities to have revenues to provide services to their citizens.
Sorry, buddy, that’s too right wing radical conservative climate change denier beliefs for me!
Why would make such a stupid statement?
What is your basis for stating that?
You write a check you can not cash!!!
You gave no idea what will happened in the next 18 months!!!
Wake up We the People. This is economics 101, not some conspiracy that you were told by someone that wants you to stay uneducated so they could rule over you. Give a real comment. Supply is tight, inflation needs to be tamed, interest rate increases are necessary to cool the economy.
Rand: You are 100% correct. And to refer to any bank as “radically progressive” is tantamount to a stand up joke.
It makes sense. I’m a homeowner and there’s no reason for me to move with a low interest rate and high real estate prices. Unless it’s a lifestyle change I’m comfortable staying put.
I was looking possibly to buy a distressed – Fixer-up home and renovate to re-sell it-
But the way things are going doesn’t seem like the home prices are going to come down soon- unless the democrats lose the elections.
By the way it may happen – because seems like Joe Biden looks to be out of it…did you see the Debate? I heard someone said that maybe the Russians had someone put a device near his podium to confuse his thoughts- and that sounds true- because why would he suddenly look like a deer in a headlight?
Another ridiculous concocted story or excuse for an ongoing decline in mental health of Joe Biden that has been clearly demonstrated for 4 years of mental senior decline. It’s as simple as that! A senior in decline; so quit making up stories to con your fellow Americans!
Drop the damn prices that’s it. They’re up 35% and they’re not going to give people a 40% raise or cut the rates down to 3% with inflation. Drop the prices or keep getting more inventory.
Market forces are at play, though not helped by government regulations inhibiting new building. Homeownership is about 67% in the US and I don’t know any of us that want prices to go down.
The buzzword is Affordable Housing but that cuts both ways. Whether you can you afford the monthly payment is the true measure. So lower prices or interest rates AND higher wages would both help.
Greater supply is needed because demand isn’t going down. Private equity firms buying up tens of thousands of homes as rentals isn’t helping, but tells us something about the value of owning Real Estate.
Equal Rights cuts both ways too. Win or Lose. People come to the US for an opportunity, not a handout. And we forget that our Government actually has NO money that they don’t take from hard working taxpayers, including imigrants who take jobs others dont want. Government needs to get out of the way and let Capitalism work.
As a past democrat I really thought their policies worked for the majority of people. I was dead wrong and understand the destruction Biden and the democratic party have caused now. I am tired of it. I feel bad I voted for him, but I will get it right in November and vote for Trump. I cannot make the same mistake twice. Contrary to what some people say, Trump and the republicans are the ones who support the middle class, not the democratic party. We were WAY better off under Trump and my money was worth much, much more. As I get older I am learning I was simply brainwashed to think the democratic party was the only option by my friends who influenced me. Not true. I think differently now. I think we all need to humble ourselves enough to have an open mind. My eyes have been opened. It is kind strange to say,but I am now a republican!
You sound almost woke!
Good for you Kayla!! We need more people to think like you! I feel like people follow others & cant find out the facts on their own…Everyone should dig deeper to find the truth!
It never ceases to amaze the energy folks put into replies, the lack of substance or inquiry, but, rather, spouting these truths and prophesies mass media broadcasts 24/7 to the world. Most Americans want fair wages, affordable housing, lower interest rates and opportunities for betterment. We should as a nation focus on our commonalities while respecting one another, knowing we all have different opinions. The media has its followers on the brink of civil war.
Blue vs. Red, conservatives vs. Liberals, rich vs. poor, any and every characteristic, belief, situation, affiliation, anything to stir the pot and get ratings. This irresponsible, reckless, diatribe is fear mongering, emotional terrorism. I miss criticism and debates…when was the last time you were asked a thought provoking question? Been a while? Our vernacular has become rubish as the questions are all on teleprompters and the answers are along party lines as the propaganda to ensight a riot, and to divide and destroy these United States from within, fall outof their mouths, Americans from every walk of life, who hate the other side…
Stop drinking the koolaid! We need each other to get up, get on the same page, and get the wheels back on the cart. Americans can unite and redirect our course to one of reason, justice, equality, self preservation, growth… pointing fingers, blaming, bitching, and spewing crap is not opening any eyes or hearts. Is there anyone else out there that loves America and wants to find solutions for the issues we face without parroting the media and partisan diatribes, but with facts, now ideas, hard questions, negotiation and faith in God we Trust? The Declaration on Independace and Bill of Rights are ours, and I want to cherish those principals and live to see Americans being the amazing humans we can be in an advanced civilization and country the world will once again admire and aspire to emulate, rather than the mindless zombies feeding off the poison spewed by the media. America is becoming Stepford stupid… Its easier than doing the work, asking the questions, and creating solutions, but I like to work! Is anyone else there wanting to be proud Americans and stand together or have all the hearts of the brave become vessels of hate, at war against your brothers you dont know, but you’ve been told who and why things are not-so-good and pointing fingers, blaming, shaming, etc. is what you do… they said to…. is it helping? Is it making things better? Do they care about you? Before you spout off the latest headlines, party talking points, or anything they said or wrote, ask a question to learn more. Understand. Act from your own beliefs. That’s what we can do in America…its fundamental for freedom. United. One People. Lets get it together! God Bless America!
BRAVO, William! I like to debate and be able to talk to people who have differing opinions, but we can’t do that anymore. The media has turned us into a mob, having only one opinion, and it can’t be swayed or changed in any way. I deplore what we have all become. The them versus us mentality has to change. We have to work together before we destroy everything good about our Country. We also need to ensure our Politicians are working FOR us and not just against each other.
Amen William! I have many people in my life that fall on either side of our polarizing political factions and at the core we all want the things you mentioned. And we manage to discuss it without throwing punches or insults. We need more options in govt and not just what we are stuck with now. ALL politicians will gladly take our tax dollars and continue to spend them and no one is leaving us with a penny more than they can get away with taking. We almost need to start shouting “no taxation without representation” again.
The issue on the table though is housing for this discussion. We are no longer experiencing a short supply in our market and still the buyers are sitting on the fence because they can’t afford the house price, interest rates AND insurance costs because the collision of all 3 is stalling the housing market in FL. Our federal & state governments aren’t the only ones running amok and causing damage……big business is aiding & abetting them 100% and its all being happily reported by our media because its much easier to control people that are uneducated to real facts and pissed off! I so applaud your efforts to get people to educate themselves away from the media. I hope people take your advice.
Well said…stop identifying with people who don’t know or understand you. Turn the news off and go outside and help and neighbor, volunteer your time, open your hearts and minds before it is too late.
Bottom line is that our current government has spent money like a person with a open credit cad that they don’t have to pay for !!!!
They are tying to give people money and benefits to buy votes– same reason that the border is wide open — bring in all the illegals and then give them the right to vote and they will vote for the party that opened the gate and then gave them a free ride —
Its not rocket science people — but please don’t tell the democrats that because they will scream at you and slam the door on any discussion — i have met a lot of formally eduated people that don’t have any common sense when it comes to digging into the economics of what is really going on ….. someone is going to have to pay this HUGE credit card bill and i’m afraid its going to be the seniors and the people that were smart enough to save money and invest
Bottom line is that our current government has spent money like a person with a open credit cad that they don’t have to pay for !!!!
They are tying to give people money and benefits to buy votes– same reason that the border is wide open — bring in all the illegals and then give them the right to vote and they will vote for the party that opened the gate and then gave them a free ride —
Its not rocket science people — but please don’t tell the democrats that because they will scream at you and slam the door on any discussion — i have met a lot of formally eduated people that don’t have any common sense when it comes to digging into the economics of what is really going on ….. someone is going to have to pay this HUGE credit card bill and i’m afraid its going to be the seniors and the people that were smart enough to save money and invest